Austria Scope of Income Tax
All resident companies and permanent establishments of non-resident companies are subject to corporate income tax. Resident companies are liable for tax on their worldwide income. Non-resident businesses are taxed on their Austrian-sourced income only.
Austria Income Tax Rates
The corporate income tax rate for 2010 is 25%, as well as the tax rate for capital gains of companies.
Austria Calculation of Taxable Base
Taxable income includes all trading profits, passive income and capital gains. Dividends are also included.
There is no time restriction on the carry forward of federal or local losses. However, the amount is limited to 75% of income for that year. Remaining losses may be carried forward and deducted in future years. Losses cannot be carried back.
Austria Filing Requirements and Payment of Tax
The standard tax year is the calendar year and tax returns must be filed by the end of April or, if filed electronically, by end of June. Unauthorised late filing may incur a maximum penalty of 10% of the tax due.
Quarterly payments are due on February 15, May 15, August 15 and November 15, and are based on the previous years’ figures.
Austria Withholding Taxes
Withholding tax of 25% is payable on domestic interest payments. The same rate applies to interest payments to non-treaty countries. No withholding tax is due on domestic royalty payments. Payments to recipients within the EU are exempt, and payments to non-treaty countries are subject to 20% withholding tax.
For domestic as well as non-treaty country dividend payments, a withholding tax of 25% is payable. A minimum 10% shareholding makes payments to other EU countries exempt from withholding tax.
A withholding rate of 20% applies to payments to authors, presenters, artists, architects and entertainers.
Austria Capital Transfer Tax
Capital transfer tax is charged at a rate of 1% on share capital issues and increases, and on contributions of capital to a company.
Austria Sales Taxes and VAT
The standard VAT rate is 20%. A reduced rate of 10% applies to food, books, medicines, hotel accommodation and transportation. Exports are zero-rated.
The areas of Jungholz and Mittelberg are excluded from VAT for the importation of goods.
Small businesses are exempt from VAT if their turnover does not exceed €22,000. Traders with a turnover of below €7,500 in an assessment period are not required to submit a return.